Hero MotoCorp Limited (HMCL), the world’s largest two-wheeler manufacturer, has reported record sales for the fourth quarter (January-March 2014). Riding on its highest-ever quarterly sales of 15,89,462 units of two-wheeler for the period, the company’s total turnover (Net Sales & other Operating Income) in the quarter grew to Rs 6512.96 crore, a growth of 6% over Rs 6145.75 crore recorded in the corresponding quarter in last fiscal. The standalone net profit for the fourth quarter was down by 3.44% to Rs 554.43 against Rs 574.23 crore recorded during the same period a year ago.
EBIDTA margin for the quarter stood at a healthy 13.73 %. Fuelled by its sales of over 62,45,960 units in this fiscal, the company registered a total turnover (Net Sales & Other Operating income) of Rs 25275.47 crore for the full financial year of 2013-14, as compared to Rs 23,768.11 crore reported in FY’13. The company reported profit after tax (PAT) of Rs 2109.08 crore and operating margin of 9.62 %, in the fiscal. HMCL’s EBIDTA stood at 14.01 % for the financial year.
Hero MotoCorp has been able to maintain the earning per share (EPS) of 105.61 in line with the previous year despite the higher rate of income tax in the current year. There is only 30% tax exemption this year, it being the sixth year of the company’s operations at Haridwar. The company was entitled to 100% exemption in the first five years of operation at its plant located in Haridwar, which expired last year.
“These numbers are reflective of our new strategic approach focused on bringing path-breaking technologies and consolidating our leadership. FY’14 was all about setting new benchmarks, which culminated with the sales of 6.25 million during the year – our highest-ever sales for any financial year. However, the industry continued to witness tepid growth during FY’14, although the sentiments did improve in the second half of the year, starting with the festival season in October. In FY’15, we have an action-packed year ahead of us with a slew of new products lined up for launch and further expansion of our global footprint,” said Pawan Munjal, Managing Director and CEO of HMCL.
The country has just entered a new era of governance. After three long decades, a single political party has come to power with such a huge majority, and it is clearly a mandate for good governance, development and inclusive growth. With the new government expected to speed up the reforms process and improve the investment climate, “we look forward to a revival of the economy and the industry this year,” he added.
